Torrid Holdings Inc. (CURV): Business Model Canvas [Dec-2025 Updated]

You're digging into a company making a major strategic shift, and as an analyst who's seen a few of these pivots up close, you know the devil is in the details of the business model. Torrid Holdings Inc. is executing a clear move: aligning its unified commerce with digital demand while aggressively optimizing its physical presence-think closing up to 180 stores in fiscal 2025. They are betting hard on their core value proposition of superior fit for sizes 10 to 30, aiming for net sales between $995 million and $1.002 billion this fiscal year. To truly grasp the risk and the upside of this strategy, you need to see how all nine building blocks fit together, so check out the full canvas breakdown right here.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Key Partnerships

You're managing a business model that relies heavily on external execution, especially as Torrid Holdings Inc. pivots hard toward digital. The Key Partnerships block is where the rubber meets the road for everything from getting product made to getting it delivered and, critically right now, managing the physical footprint.

Global network of third-party apparel manufacturers and suppliers

Torrid Holdings Inc. maintains a network of third-party apparel manufacturers and suppliers, a relationship under intense scrutiny due to geopolitical risks. The company has been actively working to reduce its exposure to China by diversifying its sourcing into other countries. This required cultivating strong relationships with a broad range of vendor partners who often possess manufacturing capabilities across multiple geographies. This partnership strategy is directly tied to managing cost volatility, as seen with the tariff situation. For fiscal 2025, the company anticipated a total tariff impact of approximately $50 million, but through sourcing actions and expense reductions with these partners, they planned to mitigate $40 million of that exposure, leaving a net exposure of $10 million for the full year. This highlights how critical these supplier relationships are for cost control and supply chain resilience.

Logistics and fulfillment partners for high-volume e-commerce

With digital demand approaching 70% of total demand as of late 2025, the efficiency of logistics and fulfillment partners is paramount. These partners handle the movement of inventory from manufacturers to distribution centers and then out to the customer, supporting a business model where physical stores are shrinking in relative importance. The company is investing capital expenditures between $13 million and $15 million for fiscal 2025, reflecting infrastructure and technology investment, much of which supports these digital fulfillment channels. The goal is a long-term demand mix of 75% online and 25% in-store, making logistics partners the backbone of the revenue stream.

Digital marketing agencies and body-positive influencers

To drive the high volume through the digital channel, Torrid Holdings Inc. partners with agencies and influencers who resonate with the body-positive community. The strategy involves refining the marketing mix toward higher return channels with more personalized targeting and improved attribution. Based on revised guidance after Q2 2025, the company was forecasting digital marketing spend to be 6% of sales for the full year. These partnerships are essential for customer acquisition and retention, especially as physical touchpoints decrease. The loyalty program is a key asset here, with 95% of existing customers engaged in it, providing a strong base for influencer and agency outreach.

Landlords for managing up to 180 store closures in FY2025

The relationship with landlords is central to the ongoing retail footprint optimization strategy. Torrid Holdings Inc. is executing a plan to close up to 180 underperforming stores in fiscal 2025 to reduce fixed costs and reinvest capital. This is a massive structural realignment. As of the third quarter of fiscal 2025, the company had already closed 74 stores year-to-date, including 15 closures in the third quarter alone. The company expects the store base to ultimately serve just a quarter of total sales. This partnership management is about negotiating lease terminations, buyouts, or non-renewals across a significant portion of the portfolio.

Here's a quick look at the store optimization progress and scale:

The company is focused on ensuring customer retention from these closures runs in line with expectations, with trends outperforming fiscal 2024, showing a greater share of customers migrating to the online platform. The cost reductions delivered from these store closures this year alone were over $18 million, with greater savings expected in fiscal 2026 once the full 180 closures are annualized.

These landlord negotiations are directly linked to the company's financial health and future operating leverage:

• Reduces fixed operating costs across the portfolio.
• Frees up capital for digital and product investment.
• Aims for substantial Adjusted EBITDA margin expansion in fiscal 2026.
• Supports the structural shift to a digitally-led model.

Finance: draft 13-week cash view by Friday.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Key Activities

You're looking at the core engine room of Torrid Holdings Inc. as of late 2025. The key activities here are about getting the right product to the right customer efficiently, especially while navigating macro pressures like tariffs and shifting consumer habits. It's a mix of creation, optimization, and targeted spending.

In-house design and product development for sizes 10-30 remains the foundation, ensuring the product fits the core customer perfectly. While we don't have a specific 2025 spend number for this, the success of the sub-brands shows this design muscle is being actively deployed to create differentiated offerings.

Executing the store optimization plan is a massive operational lift right now. This activity involves tough decisions on the physical footprint to align with a more digitally-focused future. The goal for fiscal 2025 was aggressive:

• Plan to close up to 180 stores in fiscal 2025.
• Closed 74 Torrid stores year-to-date as of the end of the third quarter.
• Realized approximately $18 million in lower operating expenses from store closures year-to-date.

The company is banking on high customer retention from these closures, which is crucial for the financial thesis behind the plan. The store count at the end of Q3 stood at 560 locations.

Digital customer acquisition and brand-building marketing is seeing increased investment to fuel the online channel, which is now approaching dominance. The strategy is to lean into top-of-funnel visibility.

Developing and scaling higher-margin sub-brands like Festi and Nightfall is a clear growth lever. These brands are designed to attract younger demographics and carry a better margin profile than the mainline business. Management views Festi as a clear winner, with Nightfall and Retro also performing very well.

The investment reflects this priority:

• Sub-brands accounted for approximately 7% to 10% of the total receipt investment for fiscal 2025.
• The goal is for sub-brands to represent up to 30% of the portfolio by 2026.

Finally, disciplined sourcing strategies are a direct response to external cost shocks. The activity here is focused on mitigating the impact of tariffs through diversification and negotiation.

For the full fiscal 2025 outlook, the company is executing to mitigate the tariff headwind:

Anticipated total tariff cost impact is up to $50 million, with a target to mitigate $40 million of that exposure through sourcing actions, expense reductions, and price optimization. This leaves a projected net exposure from higher tariffs of $10 million for the full year.

Finance: draft 13-week cash view by Friday.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Key Resources

You're looking at the core assets Torrid Holdings Inc. relies on to serve the plus-size market, and honestly, some of these are more tangible than others. The foundation here is definitely the proprietary fit technology and design expertise for plus-size apparel. This isn't just about making clothes; it's about getting the fit right for a segment that is historically underserved, which is a huge competitive moat when it works. They are actively refining this, as evidenced by the plan to reintroduce a more profitable footwear program and launch three new bra lines in 2026, signaling continued investment in core product innovation.

Next up is the unified commerce platform and e-commerce infrastructure. This digital backbone is critical for a direct-to-consumer brand like Torrid Holdings Inc. You see the commitment to this asset in their capital allocation; for fiscal 2025, capital expenditures are projected between $13 million and $15 million, reflecting ongoing investment in technology and infrastructure to support omnichannel operations.

The data derived from your customer base is a massive resource, particularly the loyalty program. You have a staggering 95% customer engagement rate within that program. This high level of engagement is key because it allows Torrid Holdings Inc. to effectively migrate customers to nearby stores or digital channels during strategic shifts, like the ongoing store optimization program. This high penetration definitely helps maintain a relationship even when physical touchpoints change.

For managing the flow of goods, the inventory management systems for disciplined stock levels are crucial, especially after recent assortment execution missteps. They ended Q3 with inventory at $128.8 million, which represented a 6.8% decrease year-over-year, showing a focus on tighter stock control. Furthermore, their sub-brand strategy, which is part of their product architecture, is expected to deliver approximately $80 million in sales this year, acting as a specialized inventory stream.

Finally, let's look at the balance sheet strength, which provides operational flexibility. At the end of Q3, total liquidity, which includes available borrowing capacity, stood at $103.4 million. Cash and cash equivalents specifically were $17.2 million. This liquidity position is what helps fund the ongoing strategic investments while navigating a period of lower profitability.

Here's a quick snapshot of some key operational and financial metrics as of the Q3 end for fiscal 2025:

You can see the focus on digital migration and inventory control in the operational numbers. The sub-brand strategy is also a key asset, with management expecting it to grow dramatically into 2026. If onboarding new product lines takes longer than expected, the reliance on the existing digital infrastructure to maintain that 95% engagement rate becomes even more critical, so keep an eye on that CapEx spend.

The company is also actively managing its physical footprint as a resource optimization strategy. They closed 74 stores year-to-date, ending the quarter with 560 locations, and plan for up to 180 closures for the full year to better align with current demand and sales channels. Finance: draft 13-week cash view by Friday.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Value Propositions

You're looking at the core reasons why the customer chooses Torrid Holdings Inc. over competitors in the plus-size market, which is a segment they dominate by focusing on a specific fit and fashion level for sizes 10 to 30. This isn't just about selling clothes; it's about delivering a specific, non-negotiable product attribute.

Fashion-forward apparel and accessories for women sizes 10 to 30

Torrid Holdings Inc. designs and sells a diverse assortment of apparel, intimates, and accessories exclusively for women wearing US sizes 10 to 30. This focus is the foundation of their entire operation. While the company navigates macroeconomic pressures, the strategic direction remains fixed on this customer base. For the full fiscal year 2025, Torrid Holdings Inc. has guided net sales to be between $995 million and $1.002 billion. This revenue base is supported by a commitment to product innovation within this size range.

Superior, consistent fit that is a necessity, not a luxury

The primary differentiator is the fit. Torrid Holdings Inc. designs almost all products in-house, specifically engineering them for consistency across categories like denim, dresses, and their highly-regarded bra collections. Customers recognize this effort; they are willing to pay a premium for a product that consistently delivers on fit and quality, which reduces the need for deep promotional discounting. This focus on quality is critical to maintaining their Adjusted Gross Margin, which was reported at 34.9% in the challenging third quarter of fiscal 2025.

Message of body positivity, inclusivity, and confidence-building

The brand message centers on empowerment, which translates into high customer engagement. To be fair, this connection is deep; 95% of customers are engaged in their loyalty program, which is a massive base for direct communication. While the core customer base has seen an age progression, the average customer age has increased from 35 to 42 since 2018, showing the brand's longevity with its initial cohort while new initiatives target younger demographics.

Strategic introduction of opening price point products for value

To balance the premium fit proposition with value perception, Torrid Holdings Inc. is strategically introducing opening price point products. This isn't a race to the bottom; it's a calculated move to broaden appeal and drive volume. The financial expectation tied to this strategy is clear: the company anticipates a benefit of 150 to 250 basis points of EBITDA margin expansion in fiscal year 2026, driven in part by this opening price point strategy, alongside core product restoration.

Diverse sub-brands to target specific lifestyle concepts

Torrid Holdings Inc. is actively using sub-brands to introduce newness and target specific lifestyle concepts, which is a major focus for future growth. They rolled out three new sub-brands: Festi, Nightfall, and Retro Chic. This strategy is expected to be significant; sub-brands are projected to make up 25% to 30% of the total product assortment in the next fiscal year (2026). For the current fiscal year 2025, sub-brands accounted for approximately 7% to 10% of the receipt investment, signaling an acceleration planned for the near term.

Here's a quick look at the financial context supporting these value drivers as of late 2025:

The company's operational adjustments, like closing up to 180 stores in fiscal 2025 to align with digital demand, are designed to fund these value propositions, with 74 stores closed year-to-date as of Q3 2025. The digital channel is a key component, approaching 70% of total demand.

You should definitely track the Q4 2025 results to see if the corrective actions mentioned by the CEO are translating into better assortment balance and margin recovery, especially given the Q3 2025 Adjusted EBITDA margin was only 4.2%.

Finance: draft 13-week cash view by Friday.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Customer Relationships

You're looking at how Torrid Holdings Inc. keeps its customer base engaged while rapidly shifting its physical footprint. The focus here is heavily on digital integration and maximizing the value of every existing relationship, especially as the store count shrinks.

High-value, data-driven loyalty program (Torrid Insider)

The Torrid Insider program is central to managing the customer base, acting as the primary mechanism for data capture and targeted interaction. Honestly, the penetration rate is quite high, which gives them a solid foundation for personalized outreach.

• 95% of customers are engaged in the loyalty program as of Q3 2025.
• The program is a critical tool for driving frequency and retention.
• Sub-brands are designed to attract new customers and reactivate lapsed ones.

Here's a quick look at the key relationship and channel metrics as of late 2025:

Personalized digital marketing and communication

With digital sales approaching 70% of total demand, the communication strategy is naturally leaning hard into personalized digital channels. They are actively reinvesting to capture more of that online revenue stream. The long-term vision is clear: a demand mix of 75% online and 25% in-store.

To support this shift, Torrid Holdings increased its digital and influencer marketing spend by $5 million in the second half of 2025, pushing the total investment for the fiscal year to approximately 6% of net sales.

Empathetic and knowledgeable in-store sales associates

While direct data on associate knowledge isn't in the financials, the strategy for the remaining physical footprint emphasizes omnichannel success. The focus is on strengthening customer relationships across all touchpoints, which means the remaining stores and associates must be highly effective at migrating customers to nearby locations or digital channels. The success of retaining customers from closed locations validates this omnichannel approach.

Customer retention efforts for closed store migration

The store optimization plan, targeting up to 180 closures in Fiscal 2025, hinges on successful customer migration. The company's objective is to retain at least 60% of customers from the stores that are shutting down. Management noted that retention trends from the 2025 closures were outperforming fiscal 2024, with a greater share of those customers moving to the online platform. As of Q3 2025, they had closed 74 stores year-to-date, ending the quarter with 560 locations.

This retention strategy is supported by enhanced communication plans designed to successfully migrate customers.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Channels

You're looking at how Torrid Holdings Inc. gets its product-stylish apparel, intimates, and accessories for women sizes 10 to 30-into the hands of its North American customer base as of late 2025. This is a brand built on a direct-to-consumer (DTC) foundation, which means they control the customer experience from design to final sale, primarily through two major avenues.

The primary engine for demand is the digital storefront. Management has been focused on this area, with the e-commerce platform approaching 70% of total demand. This digital focus is supported by a mobile application, which is a key touchpoint for engaging the customer base, especially those in the loyalty program.

The physical footprint is undergoing a significant recalibration. The network of physical retail stores is being optimized to better align with current demand patterns. As of the end of Q3 2025, Torrid Holdings Inc. operated 560 locations. This number reflects an active optimization strategy, with the company having closed 74 stores year-to-date in fiscal 2025, and planning up to 180 closures by year-end to streamline the physical presence.

The overall model is explicitly a direct-to-consumer (DTC) model across North America. This structure is supported by technology and community engagement, including social media channels used for brand building and customer interaction.

Here's a quick look at the channel metrics as reported for the third quarter of fiscal 2025:

You should keep an eye on how the store optimization plan impacts the overall sales mix. The goal is to shift resources to the higher-performing digital channels while maintaining a productive physical presence.

• E-commerce platform: The core revenue driver, supported by the mobile application.
• Physical retail stores: Undergoing a reduction to 560 locations as of Q3 end, with plans for up to 180 closures in fiscal 2025.
• Mobile application and social media channels: Used for customer acquisition, loyalty engagement, and brand building.
• Direct-to-consumer (DTC) model: The overarching structure covering all sales across North America.

The company is also focusing on product architecture to support these channels, planning for approximately 30% of the assortment offering to be at opening price points moving into 2026.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Torrid Holdings Inc. as of late 2025, which is a segment that has been both resilient and challenging lately. The company is fundamentally focused on women in North America who wear US sizes 10 to 30.

The overall market size for the Plus-Size Women's Clothing Stores industry in the United States is estimated to reach $13.3 billion in 2025. Torrid Holdings Inc. itself has trailing twelve month revenue near $1.04 billion.

Here is a breakdown of the key customer groups shaping the strategy:

• Core plus-size women (US sizes 10-30) seeking fashion and fit: This is the foundational segment, the entire focus of the brand.
• High-value, loyal customers with high purchase frequency: This group is critical, yet recent performance showed a pullback; in the third quarter of fiscal 2025, the most loyal customers reduced their frequency and purchase fewer tops. The company is trying to re-engage them with an opening price point strategy, aiming for those categories to be close to 30% of sales by the first quarter of next year.
• Younger, trend-aware customers targeted by new sub-brands: Sub-brands like Festi, Nightfall, and Retro Chic are specifically designed to attract new and younger demographics, with new customers averaging in the mid-30s in age. These sub-brands are on track to deliver approximately $80 million in sales for fiscal 2025 and are planned to represent nearly a third of the business by 2026.
• Customers migrating from closed physical stores to digital channels: The company is actively optimizing its retail footprint, planning to close up to 180 stores in fiscal 2025. As of the end of the third quarter of fiscal 2025, 74 stores had closed year-to-date, leaving 560 locations. The success of this migration is supported by a historical customer retention rate of approximately 60% from closed locations.

The overall shift to digital is significant; online demand is now approaching 70% of total sales, with a long-term target of a 75% online and 25% in-store demand mix. This digital dominance is supported by a highly engaged base, with 95% of customers participating in the loyalty program.

Here's a quick look at the recent channel mix and store footprint changes:

The company is actively trying to balance the pull-back from its most established customers with the acquisition of younger shoppers via sub-brands, while simultaneously reducing its physical footprint to align with where demand is actually occurring. Finance: draft the 13-week cash view by Friday.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Torrid Holdings Inc. business as of late 2025. The focus here is on how they are structurally managing expenses, especially with the ongoing store optimization plan.

The largest variable cost is definitely the Cost of Goods Sold (COGS), which covers merchandise and freight. For the third quarter ended November 1, 2025, Net Sales were $235.2 million.

Here's a quick look at the key profitability metrics from that quarter, which directly inform the COGS calculation:

Based on those numbers, the inferred Cost of Goods Sold (merchandise and freight) for Q3 2025 was approximately $153.0 million ($235.2 million in sales minus $82.2 million in gross profit). The lower gross margin, at 34.9%, reflected higher promotions and deleverage from the lower sales base.

Store operating expenses are being actively managed through the fleet optimization. Torrid Holdings ended the third quarter with 560 stores.

The Selling, General, and Administrative (SG&A) expenses show the structural cost-cutting in action. For the third quarter, SG&A was $66.3 million, down from $74.9 million a year ago. That's a 11.5% year-over-year reduction in SG&A, which is a direct result of the store optimization initiative and a broader shift toward a more efficient, variable cost structure. This discipline allowed SG&A to leverage 30 basis points to 28.2% of net sales for the quarter.

Looking ahead, the company has specific guidance for capital investment and known external cost pressures:

• Capital expenditures are projected to be in the range of $13 million to $15 million for fiscal 2025, with this spending strategically focused on technology and infrastructure enhancements.
• The net tariff cost exposure for fiscal 2025 is estimated to be approximately $10 million, after the company mitigated $40 million of the total expected $50 million tariff impact through sourcing actions and expense reductions.

Finance: draft 13-week cash view by Friday.

Torrid Holdings Inc. (CURV) - Canvas Business Model: Revenue Streams

You're looking at how Torrid Holdings Inc. actually brings in the money, which is pretty straightforward: it's all about selling apparel, intimates, and accessories to the plus-size customer.

The core of the revenue is Net sales from apparel, intimates, and accessories, which is the entire product offering. To give you a snapshot of where things stood mid-year, Torrid Holdings Inc. reported net sales of $262.8 million for the second quarter of fiscal 2025.

The big story here is the channel shift. E-commerce sales are the dominant and growing revenue source. Honestly, digital is where the customer prefers to shop now. As of the first quarter of fiscal 2025, digital sales were already approaching 70% of total demand. The company is actively accelerating this transformation to be more digitally-led, with a long-term goal for a demand mix of 75% online and 25% in store.

Conversely, physical retail store sales are declining as the fleet is optimized. This isn't a guess; it's a deliberate strategy to reduce fixed costs. Torrid Holdings Inc. planned to close up to 180 underperforming stores in fiscal 2025. The goal is to reallocate resources to the digital channel while retaining the customer base; they noted an average customer retention rate of 60% in markets affected by closures. It's a clear move away from physical footprint dependency.

Here's a look at the latest official financial expectations for the full fiscal year 2025, based on the most recent updates from the second quarter call:

You can see the guidance for the full year reflects the mid-year performance and the ongoing strategy. For instance, the Q2 Adjusted EBITDA came in at $21.5 million, representing an 8.2% margin. The company is also managing external pressures; the total expected tariff impact for fiscal 2025 is approximately $15 million, with 80% of that cost mitigated.

The revenue streams are being shaped by these strategic actions:

• Net sales from core product categories: apparel, intimates, and accessories.
• E-commerce sales, which are the primary driver, nearing 70% of total demand.
• Physical store sales, actively being reduced via a store optimization plan targeting up to 180 closures in 2025.
• Revenue is also influenced by the temporary pause in the fully China-sourced shoe offerings, expected to cause a revenue loss of approximately $40 million to $45 million for 2025.

Finance: review the Q3 forecast against the updated FY2025 guidance by next Tuesday.